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To: Eric D. Moody who wrote (15459)	8/31/1998 8:09:00 PM
From: Glenn D. Rudolph	Respond to of 164684

ANALYSTS: NEED GLOBAL INT. RATE CUTS TO AVOID RUSSIAN WRECKAGE Futures World News - August 31, 1998 01:07 %FINANCIAL %STOCK %CURRENCY %ECONOMY %GOVERNMENT V%FWN P%FWN London-Aug. 31-FWN--ANALYSTS SAY AN INTEREST RATE CUT across group of Seven (G-7) nations may be the only move that can prevent a 1920s-like global depression, as Russian political and financial spillover grows. Key links and recent events in both financial and equities markets are acting as catalysts to make the Russia crisis very contagious, analysts noted today. Nick Shamim, currency analyst from ANZ Investment Bank, said, unless there is a concerted rate cut from the G-7, "we are heading towards a global recession." Shamim agreed this could be of the scale seen in the 1920s. A main critical factor behind the ongoing panic is a global liquidity shortage. In addition, the structure of international markets allows contagion to be transmitted, analysts noted. In part, the infection originated in Asia. The financial turbulence began there, and has now become a significant economic downturn affecting world growth. RUSSIA CRISIS WORSENING, SPREADING AMONG GLOBAL MARKETS Political risk from Russia is now rapidly feeding the fire, analysts said. Political uncertainty over who will rule--and how--is perhaps the most immediate and significant factor in global panic, said several analysts. Many government leaders and bankers have been minimizing the problem of Russia's debt exposure--saying it is limited and that Russia must put its own economic house in order. But if the unstable political situation continues, this will destroy any hope for world financial stability, according to some analysts. Others noted that the exposure is greater than people realize. "The problem is that Russia is still the second or third largest world power," said Georgio Radaelli, head of European research at First Chicago. "There is the fear of revolution or coup d'etat in a country which has nuclear weapons." This poses a special security risk for West Europe. GNI research analyst Mark Henry said talk of some sort of political coup against Russian President Boris Yeltsin has increased market nervousness. "They prefer the devil they know--that's Yeltsin--to someone they don't," he said. However, the main issue is not Russia's nuke status, he said, but the perception that other emerging markets could follow Russia into financial meltdown. "Venezuela is in a very similar situation to Russia right now," he said. As players continue to panic, this country could fall, "and players are wondering where could be next." More to follow...

To: Eric D. Moody who wrote (15459)	8/31/1998 8:44:00 PM
From: Tom D	Read Replies (1) \| Respond to of 164684

<<there is "NO prestige and influence of the oval office">> If this behavior was done by a 47 year old president of a university to a college student, he would have been driven out of office in shame. It is all the worse when the US president has used lies and hypocrisy as a routine way of doing business. He promised us "the most ethical administration in history". He delivered a series of scandals marked by public promises of cooperation accompanied by private stalling, witness intimidation, disappearing and reappearing records, etc. What do his promises of "full cooperation" with various investigations mean? How pathetic! Who believes these words? Nonetheless, IMHO, the market correction is due to 1) overvaluation (historic record highs in the S&P's PE ratio) and 2) an impending global recession which appears incorrectable due to incompetent economic leadership in many countries. I don't blame Clinton for the stock market at all. Does anybody think a better US president could have prevented what is happening in Russia and the far East? Best Regards, Tom